U.S. biotech industry awaits Europe approval speedup

By Missy Ryan

WASHINGTON (Reuters) - The U.S. biotechnology industry is awaiting this fall's deadline for Europe to speed up its approval of new biotech food and crops -- a process Washington has long complained is woefully slow -- in the hope of increased access to a major market.

After a World Trade Organization ruling last year found "undue delays" in Europe's approval of biotech products, the EC has until November 21 to bring its system up to speed.

"We still ... are not getting approvals through (the European) Commission, much less on a timely ... and science-based basis," said Sharon Bomer, vice president of industry group BIO, which includes major biotech players such as BASF Plant Sciences, a unit of Germany's BASF, and Bayer Cropscience.

Yet the industry is hoping the Bush administration won't have to press its complaint further at the WTO, which could ultimately lead to trade retaliations. Instead, it wants an amicable agreement to a conflict that has ruffled trans-Atlantic trade relations for years.

After a challenge from the United States, Canada, and Argentina in 2003, the WTO found the EC had a de facto moratorium on approving biotech products from 1999 to 2003.

Canice Nolan, who heads food safety affairs for the European Commission's delegation in Washington, said the EC is studying how to tighten up its internal processes and assessing other steps to streamline its approval system.

"We plan to have this done before the time limit runs out," Nolan said.

EU-U.S. discussions are continuing on the issue, with the next meeting scheduled for October, Bomer said.